THE GOVERNMENT WILL NOT BE RECOVERING ALLOWANCES ALREADY PAID UNDER THE NEW COMPENSATION SYSTEM – FINANCE MINISTER

Kingston, Jamaica: Thursday, November 24, 2022

The Government has never planned to recover and will not be recovering, allowances that have already been paid to public sector workers as part of the implementation of the new compensation system.

The restructured public sector compensation system represents a new compensation structure for the public sector. It is not simply an increase on existing rates nor is it an update of the existing system. It is a new concept on how public sector employees are compensated with a guaranteed minimum increase in net compensation.

The new compensation system seeks to provide a single salary payment to an employee that represents a basic salary and certain allowances.  The construct of the single salary payment has taken into account all such allowances that are being discontinued.

Statutory deductions paid and recorded for each employee for the Fiscal Year 2022/23 will need to be in line with computations under the new system. However, given the Government’s guarantee of a minimum increase in net compensation, there won’t be any requirements for employees to make any repayments of allowances already received. The gross compensation under the new system has accounted for the statutory deductions that will be due and for the minimum net compensation increase guaranteed by the Government for all public sector employees.

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For more information contact:

Corporate Communication & Public Relations Branch
Ministry of Finance and the Public Service
30 National Heroes Circle
Kingston 4
Tel: (876) 932-4656/4660/4655